Tag: BNSF

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BNSF Railway, a subsidiary of Berkshire Hathaway, recently found their attempt to settle a lawsuit with the Swinomish Tribal Community met with rejection.

The company had offered a settlement sum of $21.7 million, only to have it dismissed by the tribe. In response, the freight railroad has requested the involvement of a federal judge to appoint an arbiter who can determine an appropriate settlement, as the tribe did not provide a response to BNSF’s offer.

The lawsuit in question was initially filed back in March 2015, asserting that BNSF had breached the terms of a right-of-way easement granted to them by the railroad.

According to the Swinomish Tribe, BNSF had exceeded the agreed limits on train and car crossings outlined in the agreement. The violation was deemed to be conscious and deliberate by U.S. District Court Judge Robert Lasnik, who issued a ruling on March 27. Judge Lasnik also pointed out that this transgression was motivated by the pursuit of profits.

The primary concern of the Swinomish Tribe revolves around the potential risks posed to their waterways by the transportation of oil via trains passing over the Swinomish Channel. This channel acts as a crucial link between Skagit Bay in the south and Padilla Bay in the north. The tribe’s historical treaty rights safeguard their fishing activities, and they are apprehensive that BNSF’s transportation of Bakken crude oil, in a manner and quantity that contravenes the explicit terms of the easement agreement, may jeopardize their way of life. Furthermore, the tribe asserts that BNSF had operated these trains without obtaining their consent or permission.

Should BNSF lose the lawsuit, they could potentially face significant damages.

The Swinomish Indian Tribal Community holds the status of a federally recognized tribe residing in the Pacific Northwest, specifically in the state of Washington. Their ancestral connection to the Skagit River-Delta of Puget Sound spans numerous centuries, during which they have relied on fishing in the region’s brackish waters. The tribe’s historical treaty rights serve to safeguard their cultural heritage and way of life, and their deep-rooted ties to the land and waterways are self-evident.

The tribe’s concerns regarding the threat posed by oil trains to their waterways are not without foundation. The Swinomish Channel, which the trains traverse, stretches over 11 miles and links Skagit Bay in the south to Padilla Bay in the north, forming a separation between Fidalgo Island and mainland Skagit County. Any accidents or spills involving these trains could have dire consequences for the local environment, potentially leading to water contamination, harm to aquatic life and wildlife, as well as damage to tribal lands.

The Swinomish Tribe’s anxieties materialized on March 16 when two BNSF locomotives derailed on the Swinomish Indian Tribal Community Reservation, resulting in the spillage of diesel fuel. As a result, cleanup efforts were undertaken, involving the removal of roughly 2,100 cubic yards of contaminated soil and 4,300 gallons of groundwater from the site.

This struggle for their land rights is not the first instance in which the tribe has had to contend with external forces. The passage of trains through the tribe’s land has a long and contentious history, beginning with the laying of the original tracks in the late 1800s, without the consent of the Swinomish or the U.S. government. These tracks intersect with the northern boundary of the reservation, and the Swinomish, as the contemporary political successor to certain tribes and bands that signed the 1855 Treaty of Point Elliott, initially filed a lawsuit against the railroad in 1976.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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BNSF Railway, a subsidiary of Berkshire Hathaway, has announced that members of the Transportation Communications Union (TCU)/Brotherhood of Railroad Carmen (BRC) will now receive an additional four paid days off to use as sick days. Furthermore, these members will gain the ability to convert up to three personal leave days to sick days each year, which is a great benefit for the affected team members.

BNSF’s announcement continues the progress it is making in resolving a key area of contention between the railroad and its employees. It recently reached agreement with the International Brotherhood of Boilermakers (IBB) for paid sick leave, and previously announced that it would grant individual paid sick days to its railroaders who are members of the Transportation Communications Union (TCU) and the National Conference of Firemen and Oilers (NCFO); and provide sick leave to its railroaders who are members of the International Association of Machinists and Aerospace Workers (IAM), the BRS, and the International Association of Sheet Metal, Air, Rail and Transportation Workers-Mechanical and Engineering Department (SMART-MD).

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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BNSF Railway and three more of its unions have agreed to an additional four paid days off to use as sick days. The unions are the International Association of Machinists and Aerospace Workers (IAM), the Brotherhood of Railroad Signalmen, and the mechanical and engineering department of the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART-MD).

The Transportation Communications Union, and the National Conference of Firemen & Oilers had already agreed to additional paid sick leave in February .

“BNSF remains committed to continued dialogue, including the potential addition of paid sick days for those crafts that did not already have individual paid sick days prior to the recent national bargaining round,” the railroad stated in a news release.

Starting in December of last year, District 19 set up meetings with BNSF to talk about a number of important issues, including paid sick time. Through a number of in-person meetings and Zoom calls, District 19 leadership was victorious in achieving paid sick time for our members while protecting all other negotiated benefits.

“This is a historic win for our members as we have been fighting for paid sick time for quite some time,” IAM District 19 BNSF Lead General Chairman Kenny Krause said.

District 19 was also able to make improvements and modernize the agreement by incorporating electronic mailing, allowing for better and faster transfer of information. This will also help to speed up the claims process.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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BNSF Railway has become the fourth of the seven Class I railroads to announce an agreement for paid sick leave with some unionized workers, reaching agreement with the Transportation Communications Union and the National Conference of Firemen and Oilers.

The TCU agreement applies to insourced intermodal equipment operators, which represent a majority of the union’s members at the BNSF. Other TCU members already had paid sick days in their agreement.

“We hope these are the first of a series of new agreements across our other crafts who did not already have individual paid sick days prior to the recent national bargaining round,” BNSF said in a statement. “Today’s agreements are part of a collaborative effort aimed toward modernizing the work environment and addressing quality of life.”

As in agreements at other railroads, members of the two unions will receive four paid days off to use as sick days and will have the ability to convert up to three personal leave days to sick days each year.

BNSF joins CSX Transportation (which has agreements with six unions), Union Pacific (two unions), and Norfolk Southern (one union) in announcing sick-time agreements with some labor unions.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Berkshire Hathaway’s BNSF Railway has announced a 2023 capital investment plan of $3.96 billion. BNSF’s capital investments play a key role in its ability to operate a safe and reliable network while

“Our capital plan reflects our growth mindset and commitment to having the capacity and equipment we need to support our customers. Continued investment in our network through our capital plans helps ensure we run a safe, efficient and growing railroad that provides customers with the service they expect from BNSF,” said Katie Farmer, President and CEO.

The largest component of this year’s capital plan, $2.85 billion, is devoted to maintaining BNSF’s core network and related assets. Investing in BNSF’s existing infrastructure ensures the railroad is in top condition, which results in less unscheduled service outages that can slow down the rail network and reduce capacity.

Maintenance projects include replacing and upgrading rail, track infrastructure like ballast and rail ties, and maintaining its rolling stock. It will consist of nearly 14,000 miles of track surfacing and/or undercutting work and the replacement of 346 miles of rail and approximately 2.8 million rail ties. $402 million of this year’s capital plan is for equipment acquisitions. Over $700 million of this year’s capital plan will be for expansion and efficiency projects, adding to the nearly $2.5 billion invested in expansion projects over the past five years. This year’s expansion plans support the growth of BNSF Intermodal and Automotive, Agricultural and Industrial Products customers.

On its Southern Transcon route between the West Coast and Midwest, BNSF will support traffic growth by beginning the construction of a second bridge over the Missouri River at Sibley, Missouri, completing double track for one of the last segments of single track along the Southern Transcon. The plan continues projects that add several segments of new track in Eastern Kansas and Southern California. It will also begin a multi-year terminal and fueling project near Belen, New Mexico. All four projects will increase capacity throughout the corridor. Also, in the South, BNSF will complete a second main track expansion in Fort Worth. In the Pacific Northwest, BNSF will begin a multi-year project to add double track near Spokane, Washington, including over the Spokane River and by constructing a siding near Pasco, Washington. BNSF will continue multi-year intermodal facility expansion projects in Chicago (Cicero) and Stockton, California. Also, in California, BNSF will continue its track efficiency improvement projects in San Bernardino, along with property acquisitions in the Barstow area, enabling future rail facility and infrastructure development for the Barstow International Gateway Project.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Bakken Energy, an innovative developer of affordable clean hydrogen, has signed a Memorandum of Understanding with BNSF Railway to work together on the design of the Heartland Hydrogen Hub, specifically the role of railways as consumers and transporters of clean hydrogen.

“We see our work with Bakken Energy and the Heartland Hydrogen Hub as part of our commitment to a more sustainable energy and transportation system, including exploring the role railways can play in a hydrogen economy” said John Lovenburg, VP of Environment and Sustainability at BNSF.

In collaboration with the States of North Dakota, Minnesota, Wisconsin and Montana, Bakken Energy is working on the design of the Heartland Hydrogen Hub, a regional clean hydrogen hub competing to obtain federal funding through the Department of Energy’s $7 billion Regional Clean Hydrogen Hubs program announced on September 22, 2022 as part of the larger $8 billion hydrogen hub program funded through the Bipartisan Infrastructure Law.

The foundation of the industry-led Hub is Bakken Energy’s large scale affordable clean hydrogen production using natural gas that would otherwise be flared, including carbon capture and sequestration.

“It is a privilege to be partnered with BNSF” said Bakken Energy Founder and Chairman Steve Lebow. “Railways could play a critical role in distributing our clean hydrogen production, and could also be consumers as trains transition from diesel. BNSF is the ideal partner to work out the role of railways in our Heartland Hydrogen Hub.”

“For Bakken Energy, and our Heartland Hydrogen Hub, it is all about making clean hydrogen abundant and affordable” said Bakken Energy CEO Mike Hopkins. “Part of the equation is production, but the other part is distribution and that’s where BNSF will be invaluable. Being able to transport our hydrogen by rail would dramatically reduce our distribution costs and therefore the cost to consumers.”

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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BNSF Railway Company has awarded four new locations for its Certified Sites designation. In order to be considered, sites must undergo a thorough analysis which includes an evaluation of environmental and geotechnical standards, available utilities, site availability and existing and proposed infrastructure.

“BNSF’s Site Certification Program creates tremendous value for customers who are seeking a rail-served industrial site by accelerating the process required for economic growth and development,” said Chris Danos, Assistant Vice President, Economic Development. “A customer who builds a new rail-served facility at one of these sites is expected to save six to nine months of valuable construction time as a result of this shovel-ready program,” said Danos.

The newly-designated Certified Sites feature acreage ready for industrial development:

• Dodge City Business Park, Dodge City, KS – This 244-acre location is the third Certified Site in the State. It is designated as light industrial zoning with all utilities available. Located off the BNSF network along US Highway 56 and 109.

• Reimann Industrial Center, Pasco, WA – Zoned for industrial use, this 150-acre site is conveniently located west of State Highway 395 and is six short miles from the Tri-Cities Airport. The first site of this size in the State, it is owned by the Port of Pasco, which offers a rail spur and runs adjacent to the BNSF network.

• Seward/Lincoln Regional Rail Campus, Seward, NE – This 194-acre industrial zoned site is the first-of-its-kind in the State with direct access to the BNSF network. Located in south Seward, 25 miles from Lincoln, with immediate access to Interstate 80.

• Upton Logistics Center, Upton, WY – This property consists of developable property with 295 acres of the logistics center recently certified. This site is zoned heavy industrial and is bordered to the east by BNSF Railway. Upton Logistics Center is operated by Tiger Transfer, a BNSF Premier Transloader.

Certified Sites are a part of BNSF’s Premier Parks, Sites and Transload program. The program is a strategic approach that addresses the increasing demand for customer site locations by developing various types of facilities across BNSF’s network. BNSF Certified Sites are reviewed by an industry expert in order to ensure accurate, reliable data. The goal of the program is to provide an inventory of rail-served sites that are available for immediate development.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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BNSF Railway will invest more than $1.5 billion to construct a state-of-the-art master-planned rail facility in Southern California – and the first being developed by a Class 1 railroad.

The Barstow International Gateway will be an approximately 4,500-acre new integrated rail facility on the west side of Barstow, consisting of a rail yard, intermodal facility and warehouses for transloading freight from international containers to domestic containers.

The facility will allow the direct transfer of containers from ships at the Ports of Los Angeles and Long Beach to trains for transport through the Alameda Corridor onto the BNSF mainline up to Barstow.

Once the containers reach the Barstow International Gateway, they will be processed at the facility using clean-energy powered cargo-handling equipment, and then staged and built into trains moving east via BNSF’s network across the nation.

Westbound freight will similarly be processed at the facility to more efficiently bring trains to the ports and other California terminals.

“By allowing for more efficient transfer of cargo directly between ships and rail, the Barstow International Gateway will maximize rail and distribution efficiency regionally and across the U.S. supply chain and reduce truck traffic and freeway congestion in the Los Angeles Basin and the Inland Empire,” said Katie Farmer, President and CEO of BNSF. “This will play a critical role in improving fluidity throughout our rail network, moving containers off the ports quicker, and facilitating improved efficiency at our existing intermodal hubs, including those in the Midwest and Texas. The facility will also have an important positive economic impact, including the creation of new, local railroad jobs.” said Farmer.

“The significance of BNSF’s investment to improve the supply chain here in California cannot be overstated. Rail plays a critical role in moving goods safely and efficiently, while reducing emissions due to congestion in many of our high-traffic corridors,” said Trelynd Bradley, Deputy Director of Sustainable Freight and Supply Chain Development at the Governor’s Office of Business and Economic Development. He added, “Projects like BNSF’s will work to strengthen our inland local economies, such as that of Barstow in San Bernardino County. We look forward to continuing to work with projects like these, as well as others, to drive transformative investments that will enhance and elevate California’s supply chain ecosystem for a more efficient and resilient tomorrow.”

“BNSF’s planned Barstow International Gateway will improve cargo velocity through our port and reduce truck traffic on our freeways,” said Port of Los Angeles Executive Director Gene Seroka. “This project will help ensure that goods moving through the San Pedro Bay will get to consumers, businesses and manufacturers with speed and reliability.”

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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BNSF Railway will test battery-electric locomotives in its Southern California rail yards.

Built by Progress Rail, a Caterpillar Company, the EMD Joule electric locomotives do not use diesel fuel and emit zero exhaust emissions.

Scheduled for delivery in 2024, Progress Rail will supply up to four EMD Joule battery electric locomotives to BNSF.

“The EMD Joule is a switcher locomotive meant for railyards not long distance hauling, and the environmentally friendly locomotive could help BNSF reduce emissions at locations in California. BNSF has faced stiff opposition to its proposed rail yard near the Port of Los Angeles by environmental groups that say it would increase pollution in West Long Beach.

The Joule locomotive is an exciting advancement in battery-electric locomotive technology with more energy storage and faster charging,” BNSF’s Vice President of Environment and Sustainability John Lovenburg said. “The project is well aligned with BNSF’s commitment to innovation and leadership in sustainable freight. We are focused on continuing to reduce the environmental impact in the communities where we operate and proud to do our part to assess the commercial and operational viability of emerging technologies that reduce emissions.”

Caterpillar’s Progress Rail is one of the largest integrated and diversified providers of rolling stock and infrastructure solutions and technologies for global rail customers.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.